For a beginner

Is cryptocurrency banned in Ukraine?

Is cryptocurrency banned in Ukraine?

Contents of this article:

Cryptocurrency is legalized in Ukraine, so it means that it’s time to learn more about this type of asset and dive into the study of crypto. We will tell you about the adoption of the new law; we will talk about the ways of buying and selling cryptocurrency available to Ukrainians.

How was cryptocurrency legalized in Ukraine?

The Law on Virtual Assets was signed in early 2022. It means for us that cryptocurrency is legal in Ukraine.

What is established by law:

  • the status of cryptocurrency in the legal field;
  • classification of cryptocurrencies and other digital assets;
  • ownership;
  • creation of a base for the development of legal field in the cryptocurrency sphere;
  • list of service providers and rules for their state registration in the country;
  • the ways of monitoring the market by financial institutions.

The law legalizing cryptocurrency in Ukraine enshrines the definition of assets. It means intangible benefits in electronic format, which fall under the object of civil law and have value.

What does this law give us in practice:

  • foreign and Ukrainian crypto exchanges are now officially allowed in our country;
  • banks can register accounts for legal entities dealing with virtual assets;
  • people can store savings in cryptocurrency;
  • Cryptocurrency assets are protected by the state and the court.

Cryptocurrency taxes for individuals and legal entities

Legalization of cryptocurrency in Ukraine has also changed the tax approach to virtual assets. Now individuals receive benefits that will be valid for five years. At this time the tax on profits from cryptocurrency transactions will be 5% personal income tax + 1.5% (military tax). When tax breaks end taxes will rise to 18% + 1.5%.

After legalization of cryptocurrency in Ukraine, legal entities that conduct operations with the help of virtual assets will be able to pay tax of 5% from their profits. All other companies using crypto as one of the options for conducting transactions will pay 18% tax on profits.

Where can Ukrainians buy cryptocurrency?

People began to study the topic of virtual assets even before legalization of cryptocurrency in Ukraine and many received an additional source of income. Today there are several ways to buy and sell cryptocurrencies. The most common and reliable are:

  • Cryptocurrency exchanges. The most popular are Binance, ByBit, FTX and many others. Now the activity of cryptocurrency exchanges is legalized in Ukraine, so users can choose hryvnia for trading on many platforms.
  • P2P platforms. They are Binance P2P, LocalBitcoins, Bitpapa and others. Owners of the coins place advertisements for the sale on these sites, and everyone who wants can buy the right amount of the crypto at a price that suits them. Cryptocurrency is blocked on the platform account until the seller confirms the receipt of money; and only after that it falls into the buyer’s wallet – the system is safe and convenient.
  • Online exchangers are Huobi, Coin24, EXBASE.IO and others. Users can buy coins with a debit or credit card in online mode.

These are just a few options for buying cryptocurrencies that Ukrainians use actively. Perhaps, there will be more reliable platforms for selling and buying, created specifically by Ukrainian traders after the adoption of the law on cryptocurrency in Ukraine.

How to learn to play in the cryptocurrency market and reduce risks?

Legalization of cryptocurrency in Ukraine is the first step towards the distribution of virtual assets. It won’t be long before Ukrainian businesses of any size will accept cryptocurrencies as payment system for goods and services. It is not enough to register on a popular exchange and buy some crypto to know the system and make money on cryptocurrency. It is important to study, to understand the intricacies of the market, be able to analyze its state and trends, and make forecasts for successful investments.

The Crypto Crew team pays special attention to analytics. Mentors teach community members to invest wisely. You will feel confident and free on any exchange by joining the community.